“First Alliance Mortgage Company, which had been in business in Washington since 1994, was one of the subsidiaries affected when First Alliance Corporation announced that it and several of its subsidiaries were filing a petition for bankruptcy. The operating license for First Alliance’s Bellevue office was surrendered to the state just prior to an administrative hearing on efforts by the Department of Financial Institutions to revoke it. Mark Thomson, head of the agency’s Consumer Services Division, emphasized that, the bankruptcy action will not affect the state’s determination to press forward with its charges against the company. Our department remains involved in discussions with the Attorney General’s Office regarding a cooperative effort to bring action under the Consumer Protection Act. Thomson advised consumers who have had problems with the company to contact an attorney immediately to establish whether they have a valid claim and to investigate what means are available to them for protecting their claim in the bankruptcy. He said, Consumers with concerns about their loans with First Alliance may contact our department by calling us in Olympia, toll-free, at 1-800-372-8303.”
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